Evercore Raises Pinnacle Financial Target to $116 After 12.5% Q4 Net Income Gain
Evercore ISI raised its Pinnacle Financial target to $116 and kept Outperform rating after updating its regional bank model post-Q4 2025 results. Q4 net income grew 12.5% YoY to $166 million with NII up 12% to $407.4 million; management guides $250 million in synergies and a $91–93 billion loan book.
1. Price Target Revision
Evercore ISI raised its price target for Pinnacle Financial from $115 to $116 and maintained an Outperform call after updating its regional bank coverage models based on Q4 2025 performance metrics.
2. Q4 2025 Financial Performance
For the quarter ended December 31, net income available to common shareholders rose 12.5% YoY to $166.0 million, diluted EPS grew 11.5% to $2.13, and net interest income increased 12.0% to $407.4 million on 9.5% YoY expansion in earning assets to $51.7 billion.
3. Funding and Margin Trends
Deposits funded $3.8 billion of the $4.5 billion earning asset expansion, reaching $41.9 billion, while longer-term debt and other funding sources rose 9.1% YoY to $8.0 billion; net interest margin expanded 5 basis points to 3.27%.
4. 2026 Outlook and Synergy Realization
Management expects to achieve $250 million in cost synergies over three years from the Synovus merger, projects consolidated loan balances of $91–93 billion and deposits of $106.5–108.5 billion by year-end 2026, and forecasts two 25-basis-point rate cuts bringing NIM to 3.45%–3.55%.